New Delhi: IndusInd Bank has invoked 6 crore pledged shares, which make up about 4.32% stake, of the crisis-hit Jaypee Infratech.
These shares were held by Jaypee Infratech’s promoter Jaiprakash Associates, which is the flagship company of debt-ridden Jaypee group. The group is facing protest from home buyers for significant delays in completing of housing projects in Noida.
In a regulatory filing, Jaiprakash Associates informed that “IndusInd Bank Ltd has transferred in its name 6 crore shares of Jaypee Infratech Ltd held by the company which stood pledged in their favour".
Jaiprakash Associates had 89.5 crore shares, about 64.44% stake, in Jaypee Infratech as on 31 December 2017. Of the total shares held by it, 92.55% shares were pledged. Jaypee Infratech has been taken over by a National Company Law Tribunal (NCLT)-appointed insolvency resolution professional (IRP) for recovery of bad loans.
Last year, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code. Moving ahead with the process, IRP Anuj Jain had on 27 October issued a public notice seeking applications from entities with regard to resolution of JIL.
Several players have submitted expression of interest (EOI). The resolution plan needs to be approved by the creditors and the NCLT. Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.
Jaiprakash Associates, a diversified infrastructure company engaged in engineering, construction and real estate development, cement manufacturing, hospitality and sports management, is selling its assets to repay debt.